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HomeMy WebLinkAbout08-28-06 Community & Economic DevelopmentCommunity and Economic Development Committee 2QQ6 South Bend Common Council The August 28, 2006 meeting of the Community and Economic Development Committee of the South Bend Common Council was called to order by its Chairperson, Council Member Roland Kelly at 4:11 p.m. in the Council's Informal Meeting Room. Persons in attendance included Council Members Pfeifer, Kelly, Varner, Kuspa, Kirsits, Puzzello and Rouse; Mayor Stephen Luecke, Bill Schallial, Bernie Feeney, City Clerk Jahn Voarde, Citizen Member Martha Lewis, Citizen Member Marty Wolfson, Mrs. Rita Kapala, Community and Economic Development Executive Director Sharon Kendall, Mr. William Jager, Ed Fain and Brent Kuhn of Federal Mogul, Jamie Loo of the Saufh Bend Tribune and Kathleen Cekanski- Farrand, Council Attorney. Bill No. 06-89: Personal Property Tax Abatement Request for Federal Mogul Powertrain, Inc. Council Member Kelly called fora report from Community and Economic Development on Bill No. 06-89 which is a five (5) year personal property tax abatement request for Federal Mogul Powertrain, Inc., far the property located at 3605 West Cleveland Road.. Bill Schalliol of the Department of Community and Economic Development highlighted portions of the August 10, 2008 report (copy attached) which states on page 2 that the petitioner "meets the qualifications for a five (5) year personal property tax abatement under section 2-84.2, Tangible Personal Property Tax Abatement" addressed in the South Bend Municipal Code. Ed Fain, Plant Manager of Federal Mogul Powertain, Inc. made the formal presentation. He noted that they have been manufacturing automotive pistons since 1987 in Sou#h Bend and have a world-wide customer base. They propose to spend $4,779,000 on new manufacturing equipment, and will add ^aimler Chrysler as a new client in 2007. The business climate is competitive on a global basis. They must compete with "best cost countries" which have operations in Mexico, China and India; and "price downs" of 2-3% are continuing on an annual basis. Federal Mogul will maintain its 445 existing, full-time jobs which have an annual payroll of $19,373,000. Increases for labor have averaged 3% per year for wages, despite the many challenges which they are facing. Mayor Luecke stated that Federal Mogul is a great corporation in the city who provides good paying jobs. August 28, 2008 Community and Economic ©evelopment Committee Page 2 Following discussion, Council Member Kuspa made a motion, seconded by Council Member Kirsits that Bill No. 06-89 be recommended favorably to Council. The motion passed Substitute Bill No. 06-87; 3-Year Rea! Pro a Tax Abatement Re nest for BLK LLC dlbla Old Fort Buildin Su I Council Member Kelly called fora report from Community and Economic Development an Substitute Bill Na. 06-87 which is a three (3) year real property tax abatement request for BLK, LLC dlbla Old Fort Building Supply for the property located at 1401 South Main Street. Bill Schalliol a# the Department of Community and Economic Development highlighted portions of the August 18, 2006 report (copy attached) which states on page 2 that the petitioner "meets the qualifications for a five (5) year real property tax abatement under section 2-83.1 Warehouse Development in an Economic Development Target Area (EDTA), Urban Enterprise Zone (UEZ), and Redevelopment Blighted Areas (RBA)" addressed in the South Bend Municipal Code. Mr. Schalliol noted that he had discussed this request with Council Member Kelly and the Council Attorney in light of no physical building being proposed. The Council Attorney highlighted Section VIII of the proposed resolution which notes that if the petitioner receives an enterprise zone deduction that the tax abatement would be null and void. Mr. William Jager made the formal presentation. He Hated that they have proposed a 4-phase development and are the only union dryTwall supplier in St. Joseph County. The employees are represented by Teamster Local No. 364. They plan to renovate a vacant lot into a paved and fenced outdoor storage yard for the storage of masonry products as Phase I which is projected to cost $200, 000. In response to a question from Council Member Pfeifer, Mr. Jager stated that 18 of the 20 employees are non-family. In response to a question from Council President Rouse, Mr. Jager stated that the company has been at this location since 1983, and further noted that coal and brick operations at this site go back to the early 1900's. August 28, 2006 Community and Economic Development Committee Page 3 Citizen member Wolfson made a motion, seconded by Council Member Kuspa that Substitute Bill No. 06-87 be recommended favorably to Council. The motion passed. Bill No. 06-88: Five-Year Residential Real Pro ert Tax Abatement Re nest for Uller Develo meat LLC. Council Member Kelly called fora report from Community and Economic Development on Bill No. 06-88 which is a five {5) year residential real property tax abatement request for Ullery Development, LLC for the properties located at 1810, 1818, 1834, 1844, 1852, 1860 and 1868 Overlook Court.. Bill 5challiol of the Department of Community and Economic Development highlighted portions of the August 16, 2006 report (copy attached) which states on page 2 that the petitioner "meets the qualifications for a five {5} year residential tax abatement under Section 2.77.1, Single 1=amity Real Property Abatement" addressed in the South Bend Municipal Cade. Mr. J. Bernard Feeney of Lang, Feeney & Associates, Inc. with offices located at 715 South Michigan Street in downtown South Bend made the formal presentation. He noted that they plan to construct eight {8} single-family homes an 1.98 acres as part of the Villas at Ireland Woods development; noting that there are a total of fifteen (15) lots in the total development. In response to a question from Council Member Kuspa, Mr. Feeney noted that the sale of houses is "holding its own"; and that construction of this type is in demand. Dr. Varner stated that in light of the growing number of senior citizens, there is a preference for villas. Dr. Varner added that a substantial amount of taxes will be paid by those who purchase such villas. Council Member Kuspa made a motion, seconded by Council Member Kirsits that Bill No. 06-88 be recommended favorably to Council. The motion passed. Miscellaneous Business: Under unfinished business, Council Member Kelly noted that the Committee will meet again on August 29, 2006 at 6 p.m. to discuss Project Future. There being no further business to come before the Committee, Council Member Kelly adjourned the meeting at 4.35 p.m. August 28, 2006 Community and Economic Development Committee Page 4 Respec lly submitted, ` ;, '. Cou ~ ola Kelly, Ch person Community and Economic Development Committee Attachments Zoning and Annexation Committee 2©Ofi South Bend Common Council The August 28, 2006 point meeting of the Zoning and Annexation Committee of the South Bend Common Council was called to order by its Chairperson, Council Member Ervin Kuspa at 4:00 p.m. in the Council's Informal Meeting Room. Persons in attendance included Council Members Pfeifer, Kelly, Varner, Kuspa, Kirsits and Rouse; Building Commissioner Dan Fozo, Code Enforcement Director Catherine Toppel, Robert Nemeth of the Area Plan staff, City Clerk John Voorde, Citizen Member Martha Lewis, Citizen Member Marty Wolfson, Mrs. Rita Kopola, Community and Economic Development Executive Director Sharon Kendall, William F. McLochlin, Jamie Loo of the South Bend Tribune and Kathleen Cekanski-Farrand, Council Attorney. Council Member Kuspa noted that the Committee Members consist of Council Members Kirsits, Dieter and White, and Citizen Member Ed Talley. Bill No. 46-06 Zoning text amendment addressing__ parking in residential areas: Council Member Kuspa noted that the Council has received a letter dated August 16, 2006 from John W. Byorni, Area Plan Executive Director (copy attached) noting that Bill No. 46-06 has been tabled by the Area Plan Commission until its meeting of September 1 gtn Bill No. 06-74 S ecial Exce tion #or 2720 Mishawaka Avenue: Council Member Kuspa called for a report from Building Commissioner Don Fozo with regard to the Board of Zoning Appeals recommendation on Bill No. 06- 74. Mr. Fozo reported that the special exception for the property located at 2720 Mishawaka Avenue would permit a Fraternal Organization in a mixed use zone. He stated that the Board of Zoning Appeals held a public hearing on the request on July 20, 2008 and sends it to the Council with a unanimous favorable recommendation (report attached). Mr. William F. McLochlin represented Turners of Michiana located at 2720 Mishawaka Avenue, South Bend, IN 46615 and the property owner's Ronald Pavek. Mr. McLachlin stated that he is the Director of Finance for Turners of Michiana. He Hated that the property was formerly an Italian restaurant and that a special exception is required under the City's zoning code in order for a fraternal organization like Turners to locate in a mixed use zoning district. August 28, 2006 Zoning and Annexation Committee Page 2 Turners has been in South Bend since 1861. They currently have forty-seven {47) members and is run entirely by volunteers. They have agreed to the Board of Zoning Appeals conditions noting that parking is required at a ratio of one {1) space for five (5) members and therefore the total membership at this location could not be greater than eighty (80) members. If membership exceeds this amount they would be required to move. Upon questioning by the Council Attorney, and concerns raised by Council Member Pfeifer, Mr. McLochlin confirmed that he would agree to record the Board of Zoning Appeals conditions. He also confirmed that he would check with Mr. Pavek with regard to a further agreement that if the property is sold or rented to another fraternal organization in the future that they would be bound by the eighty (80) member maximum; and update the Common Council at tonight's meeting with regard to that additional condition. Mr. Fozo and the Council Attorney noted that if the Council has further concerns with regard to the various types of fraternal organizations, that the Council may wish to consider a text amendment to Chapter 21 of the South Bend Municipal Code so that fraternal organization would be specifically defied. Council Member Kuspa noted that in light of the Committee not having a quorum, Bill No. 06-74 would go to the full Council without recommendation. There being no further business to come before the Committee, Council Member Kuspa adjourned the meeting at 4:10 p.m, Respectfully submitted, ~~~ Council Member~rvin Kuspa, Chairperson Zoning and Annexation Committee Attachments